How much do you insure your properties for?

Discussion in 'Property Management' started by Jmillar, 4th Mar, 2018.

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  1. Big Will

    Big Will Well-Known Member

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    No I use a different provider and different amount insured for and also different coverage. It was the principal used that doubling the insured amount doesn't double the premium.
     
  2. Phineas

    Phineas Well-Known Member

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    Noted, thanks for clarifying!
     
  3. gty12

    gty12 Well-Known Member

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    Melbourne
    Some insurance brokers will give you a guide on what a good amount may be (many though will worry you will hold them to it). Most online insurance calculators link back to Cordell by Corelogic. But if you want the full hog then their is a Cordell book that is much better.
    At the end of the day you are trying to avoid the underinsurance clauses so:
    • If your policy has a nasty one like the 50% penalty descried previously then suggest you overinsure
    • If your policy doesn't have one then you can probably afford to be more accurate
    • If you don't know then maybe try an insurance broker for a year or two until you get a hang of the whole insurance thing
    Another point-if your houses have asbestos in them then consider this a significant addition to the cost as remember the valuation usually includes the cost of removing debris (i.e. removing the asbestos=very expensive).

    I am NOT an insurance broker but I highly recommend them:
    • They're usually $100 or less
    • They source multiple quotes for you anyway=often saving you more than $100
    • They translate policies into simple English
    • Their fee usually includes help lodging & running claims
    • They can often get claims across the line (many brokers used to work for insurers so they know what not to mention/how to structure invoices)
    • It is way less hassle-they can often put multiple investment properties onto the one policy
     
    George Smiley likes this.
  4. gty12

    gty12 Well-Known Member

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    Melbourne
    Examples of how brokers have helped me:
    • He flagged to me how one policy had 'removal of debris' as a separate item you had to pick an amount for & how one other didn't
    • Knowing how little or much I should do before pausing to wait for insurer's reply (insurers take ages to reply typically)
    • Knowing that investigation & damages caused are coverable in a leak claim, but not remedy=a good plumber should know this too
     

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